Safeway 2013 Annual Report Download - page 38

Table of Contents
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Contractual Obligations The table below presents significant contractual obligations of the Company at year-end 2013 (in millions) (1):
2014 2015 2016 2017 2018 Thereafter Total
Long-term debt (2) $252.9 $442.2 $402.0 $501.9 $3.4 $2,165.8 $3,768.2
Estimated interest on long-
term debt 186.1 166.8 164.1 150.4 118.6 765.9 1,551.9
Capital lease obligations (2),(3) 49.3 49.9 45.8 39.3 32.9 207.6 424.8
Interest on capital leases 34.4 30.9 27.9 25.1 22.2 90.7 231.2
Self-insurance liability 108.6 82.0 55.2 37.1 25.4 124.4 432.7
Interest on self-insurance
liability 0.9 2.2 2.4 2.3 2.1 34.6 44.5
Operating leases (3) 470.3 430.3 397.3 351.1 299.5 1,781.5 3,730.0
Marketing development
funds 59.6 47.3 32.5 15.5 8.7 3.6 167.2
Contracts for purchase of
property, equipment and
construction of buildings 276.0 — — — — — 276.0
Fixed-price energy contracts
(4) 39.2 14.4 1.2 1.3 1.3 11.4 68.8
Other purchase obligations 55.8 0.2 — — — — 56.0
Total $1,533.1 $1,266.2 $1,128.4 $1,124.0 $514.1 $5,185.5 $10,751.3
(1) Excludes funding of pension and post-retirement benefit obligations which were $56.3 million in 2013. The Company currently expects to contribute
approximately $13.1 million to its pension and post-retirement benefit plans in 2014. Also excludes contributions under various multiemployer pension plans,
which totaled $259.2 million in 2013, excluding Canadian operations and Dominick's. Also excludes the estimated $310.8 million of multiemployer pension
plan withdrawal liability with the closure of Dominick's. Additionally, the amount of unrecognized tax benefits ($137.5 million at December 28, 2013) has
been excluded from the contractual obligations table because a reasonably reliable estimate of the timing of future tax settlements cannot be determined.
Purchase orders for inventory are not included in the above table as they are cancelable by their terms.
(2) Required principal payments only.
(3) Excludes common area maintenance, insurance or tax payments for which the Company is also obligated. In fiscal 2013, these charges totaled approximately
$164.3 million.
(4) See Part II, Item 7A to this report under the caption “Commodity Price Risk.”
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Guarantees The Company is party to a variety of contractual agreements under which it may be obligated to indemnify the other party for
certain matters. These contracts primarily relate to the Company’s commercial contracts, operating leases and other real estate contracts,
trademarks, intellectual property, financial agreements and various other agreements. Under these agreements, the Company may provide
certain routine indemnifications relating to representations and warranties (for example, ownership of assets, environmental or tax
indemnifications) or personal injury matters. The terms of these indemnifications range in duration and may not be explicitly defined. The
Company believes that if it were to incur a loss in any of these matters, the loss would not have a material effect on the Company’s financial
statements.
Letters of Credit The Company had letters of credit of $44.7 million outstanding at year-end 2013. The letters of credit are maintained
primarily to support performance, payment, deposit or surety obligations of
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